How to introduce financial education to children

Today’s children are more sharp and productive than we were at their age. We may learn financial concepts when we start our jobs, but kids of this era must have financial education from the start. So they can know the worth of money, and how to earn it.

They should have the capabilities to save money, so they never drown themselves in debt.

If a kid learns money management from an early age, he can avoid many financial mistakes in the future. Now in many schools in the US, financial education also become compulsory.

Other than studying a course, a kid can learn about financing and money management at home. How? By practically doing activities and watching parents, how they manage the finances.

The importance of introducing financial education to children

As a parent or teacher, it may be tricky to make the children learn about financing, budgeting, and saving. But repeating these topics in front of them from an early age can make remarkable changes. From everyday situations and money management conversations, there comes a day when they will be able to manage their money and finances. So it’s better to save money rather than pay for debt.

Success is a thing; everyone desires for his kid. Which can only be possible by managing financing. So kids of this generation should have their hands on the expenses. The survey says that 23 states of the US need financial education courses for students for graduation. So why not start teaching our kids about basic needs and how to save money for a better life?

• Better financial choices: introducing financing and money management will develop a skill in your child. So he will be able to achieve the financial goal in future life. Starting from managing money and saving will end up budgeting and investing money with better financial decisions.
• Learn from mistakes: whatever mistakes you make in life, you won’t like to happen with your kids. So if you discuss finances with them, tell them about your struggles and good/bad experiences. So that they can learn a lesson from it and never repeat the history.
• Financially independent: if you want your child to be financially independent and successful, then you have to start teaching finance at the age of seven. Because researches shows that habits build at an early age, and always go with the person.
• Educate kids yourself: waiting for school to make your kids learn about finances would be disastrous. If you don’t start financial education from an early age, your kid will end up broke in his teens. So start teaching your kids about money management and its importance from now on.

The junior Achievement survey says that 54% of teens are not able to finance their future goals. So what are you waiting for? You can teach your kids about Financing with general situations and daily routines. It will enhance their capabilities and exposure.

Best ways to introduce financial education to children

More than half of the population of the US are young generation and teens. So to make the future of this generation successful, we have to make strategies. So they can easily learn and get the concepts of financing and live the dreamy life they want. For this reason, you have to teach money management from a young age. Some great ways will help you do so.

• Currency recognition and toys: you may be worried about how you teach money management to 6-8-year-old kids. Make them recognize different coins, and what you can buy from them. What is the worth of $1, $10, $20? Provide them with toys like a piggy bank and tell them to save money to buy their favorite toy at the end of the month.
• Earn the allowance: let your kid help you with home chores, and you will give them an allowance every week. This will create a sense of how to earn money. Assign some tasks at home to them, on completion of tasks you have to give them some money. Then ask them to save it, so that they can buy whatever they want or spend when needed.
• Play games: games like Monopoly and Payday are great to teach kids about Financing and money management. Like in Payday, players have to make money to buy things, get loans, and manage the budget. Similarly, monopoly lets the player buy properties and make a move that gets them the biggest payout.
• Part-time jobs: teens and young kids are good with computers and other online activities. Ask them to earn using these technologies, there are many freelancing apps available. Other than this, they can also do part-time at coffee shops or any retailer.
• Save money for purchases: you may give pocket money to your kid. Create a sense of saving some pocket money every month to buy something big, when they have saved enough amount. They can also make every wish come true like a PlayStation or Lego set. And it will also build a habit of saving and controlling spending money on unnecessary items.
• Open an account: little kids can save money in a piggy bank, but a high schooler needs a savings account. You can open a kid’s account, so they can save money in it. Different concepts like saving, banking, and the value of money can be learned. Through online accounts, they can invest money in stock or any other investment.

All these ways can easily make your child strict towards budget and saving money. You can also discuss family finances and budgeting with them. By letting them make grocery lists and bill payments. They will practically know what you have and how much money you should spend to save some pennies.

Apps and programs to build financial habits in kids

It’s the era of smartphones and technology. You can find anything online on your mobile. Kids are also interested in playing games on mobile. Why not introduce them to the financial education app? That can build saving and budgeting habits in them.

BusyKid

Kids can learn to save money by getting paid and then saving the money. They can also use the money through a debit card. Parents can view the savings amount and spending amount details.

PRESS HERE TO DOWNLOAD THE BUSYKID APP ON ANDROID

PRESS HERE TO DOWNLOAD THE BUSYKID APP ON IOS

Greenlight

Both parents and kids can access to app, parents can send allowance funds to kids and kids can use debit cards for shopping. While parents can also have details of all the shopping.

PRESS HERE TO DOWNLOAD THE GREENLIGHT APP ON ANDROID

PRESS HERE TO DOWNLOAD THE GREENLIGHT APP ON IOS

GoHenry

It allows both parents and kids to access credit cards and accounts. Parents can view the spending details and they can also send money to the kids.

PRESS HERE TO DOWNLOAD THE GOHENRY APP ON ANDROID

PRESS HERE TO DOWNLOAD THE GOHENRY APP ON IOS

World of Money

This app has interesting video lectures for kids of different age groups like 7-9 and 19-26. They can learn complex concepts very easily by watching these videos.

PRESS HERE TO DOWNLOAD THE WORLD OF MONEY ON ANDROID

PRESS HERE TO DOWNLOAD THE WORLD OF MONEY APP ON IOS

Financial education can play an important role in making your kid a successful businessman or entrepreneur. Not only this, they will be a confident person, who can make financial decisions very quickly. Financial education from an early age is key to making a financially independent and responsible adult. Videos, apps, and programs are great ways to introduce these concepts to children.

Discover other contents in our website, like how to improve your financials!